Week ends with a weak end on retail data, Greece
Disappointing Canadian retail figures set the tone for Friday on the Toronto Stock Exchange. With the continuing saga of Greece’s debt woes never far from investors’ thoughts and Wall Street lower on expiring options it would have required positive domestic data to give the TSX a boost. Unfortunately retail figures came in at a 0.1 per cent fall for April from March when expectation was for a rise of 0.7 per cent. Asian markets closed mainly higher although Shanghai saw its sharpest correction in 7 years as investors chose to sell. European markets managed a largely positive end to the day despite the Greek crisis.
The S&P/TSX Composite Index closed down 125.5 (0.85 per cent)
The NYSE closed lower (Dow dropped 101.6)
Oil is trending lower (Brent $62.86, WTI $59.46 at 4.20pm)
Gold is trending lower
The loonie is valued at U$0.8149 (at 4.20pm)
Inflation holds steady despite lower oil prices
Statistics Canada reported the latest consumer price index data Friday showing that it rose 0.9 per cent in the year to May after a rise of 0.8 per cent in April. Analysts had expected the figure to hold steady by the growth still holds inflation at the lower end of the Bank of Canada’s target of between 1 and 3 per cent. With energy factored out there was a 2.2 per cent rise; the energy index was down 11.8 per cent in the 12 months to May following a 13.5 per cent drop in April.
Businesses complain about anti-spam law
Canada’s business community says that the anti-spam legislation that was introduced last summer is costing them business. A report by Cyberimpact shows that, although the law applies wherever the spam is sent from, it is domestic businesses that are hit the hardest; almost 40 per cent of respondents say they have lost business as a result of the law. Almost two-thirds of businesses say that SME’s were not properly informed of the rules, 10 per cent have stopped sending commercial emails and almost half say they are unable to fairly compete with US counterparts.
Bombardier return from Paris with zero orders for CSeries
Bombardier left the Paris airshow with no orders for its new CSeries jet but said it was satisfied with its showcase of the new plane. Reuters says that last year at Farnborough it secured orders for 2 planes and tentative deals for 66 more. The firm did receive an order though for 6 Q400 turboprops; to Canada’s WestJet.